Methods to Beat ABSD and Own Multiple Properties in 2026 (Updated)
- Stuart Chng
- Dec 16, 2025
- 13 min read
Still keen on getting that investment property?
The Additional Buyers Stamp Duty (ABSD) can be the biggest hurdle facing property investors.
Even if you can afford to pay it, the hefty stamp duty gobbles up a huge chunk of your eventual returns, to the point that many investors start looking abroad for opportunities, as the cost of ABSD can be equivalent to paying off a property in Malaysia, Japan, or Australia in full cash.
So... is there a “loophole“ or a way around it?
Here are some legal ways to save on ABSD and get started on owning your second or subsequent property:
First, a quick update of the ABSD changes as of 27 April 2023 in Singapore, to jog your memory.
The ABSD is a tax applied to residential property purchases in Singapore, on top of the standard Buyer’s Stamp Duty (currently 3–4% of the property price).
Both BSD and ABSD are based on a percentage of your property price or valuation, whichever is higher. (And yes, you can utilise your CPF funds if you have sufficient balances.)
Singapore citizens pay ZERO ABSD on their first property, 20% ABSD on their second property, and 30% on their third or subsequent property purchases.
Singapore Permanent Residents pay 5% ABSD on their first property purchase, 30% on their second property, and 35% on all subsequent purchases.
Foreigners* pay 60% ABSD on all property purchases. Clearly, too much hot money has been flowing in.
Entities pay 65% ABSD on all property purchases (this is relevant if you intend to buy property through a company, although this is seldom the preferred approach today).
*United States citizens pay the same ABSD rates as Singapore citizens. Citizens and Permanent Residents of Iceland, Liechtenstein, Norway, and Switzerland can apply for ABSD remission under applicable FTAs at the time of writing. Foreigners should check with their respective authorities on whether their home country’s taxes apply on top of ABSD.
How Do You Save on ABSD and Own Multiple Properties?
There are only a few ways to legally save on ABSD:
1. Buying under only one owner so the spouse can buy another property under their own name
2. Decoupling an owner from a current property to free up one name
3. “Unofficially” buying under a child above 21 years old
4. Buying under a property trust for a child below 21 years old
5. Buying a property with a dual-key layout
6. Pooling funds to buy under a trusted friend’s or relative’s name
Alternatively, you may consider investing in commercial or overseas real estate instead. (more on this below).
1. Buying a property under only one owner so that the spouse can buy another under their own name
This is the most straightforward way to own two properties within a family.
When purchasing your first home, ensure that only one spouse is listed as the owner.
For HDB flats, the other spouse can be listed as an occupier. Note that if you are an essential occupier of an HDB flat or a new Executive Condominium, you must still fulfil the five-year Minimum Occupation Period (MOP) before you can buy a private property.
Downside: Not being listed as an owner means a party's CPF cannot be utilised and incomes cannot be considered upon for loan applications.
This also means that only the listed owner is obliged by law to pay the mortgage, although couples may privately agree on how to split expenses.
Later, when the spouse purchases a private property, they can do so as a first-time buyer and avoid ABSD (or pay only 5% if they are a Permanent Resident).
The considerations for this method are:
- Only the CPF Ordinary Account funds of the sole owner can be used.
- The sole owner must meet the income requirements to qualify for the home loan.
For brand new executive condominiums and HDB flats, the loan repayments cannot exceed 30% of the sole borrower’s gross monthly income (This is known as Mortgage Servicing Ratio).
For private properties and resale executive condominiums, the home loan – plus all existing debt obligations – cannot exceed 55% of the sole borrower’s gross monthly income. (This is known as Total Debt Servicing Ratio).
There must be acceptance between all parties that, legally speaking, the sole owner is the one who holds the deed to the property; even if in reality their partner contributes as much or more to the mortgage.
Typically, I would recommend the higher income owner to hold the higher value property.
Apart from qualifying for the loan, this would support future portfolio growth plans when you gear up a property and free up equity when it appreciates in value.
Simple, but subject how comfortable the spouse is with this arrangement of being left out of the ownership equity.
2. Decoupling an owner from a current property to free up one name
Decoupling involves one co-owner transferring their share of ownership to the other co-owner(s).
The exiting party is then considered a first-time home buyer for their next purchase.
Note that married couples cannot decouple in this way for HDB flats as the loophole in granting frivolous transfer of ownership to one party has been closed on May 4 2016.
Decoupling has been a commonly used method as many married couples in the past, before the implementation of ABSD, bought homes under both names as a norm.
It is simply the removal of 1 owner from the property through the "buy out" by the other party. It is sometimes known as part-sale or part purchase.
More recently, there are permutations that evolved as a consequence of insufficient financing abilities with the increase in TDSR's (Total Debt Servicing Ratio) stress test rate and lowered loan to valuation limits.
For example:
Say you and your spouse purchase a private property as tenants-in-common.
This allows you to split ownership of the property. The common form of this holding method is to split the ownership 99-1 (e.g. your spouse owns 99 per cent, while you own 1 per cent).
The immediate benefit of doing so is that both incomes can be used to support the home loan application and both parties' CPF Ordinary Account funds can be used for the down payment and ongoing mortgage installments.
Let's assume that you have saved up the funds to invest in a second property after a few years.
You would then sell your 1 per cent ownership to your spouse, who incurs a Buyer Stamp Duty (BSD) only on the value of the 1 per cent being transferred.
This amount must be paid first in cash before it can be redeemed through CPF.
If it happened within 3 years, you will incur a Seller Stamp Duty (SSD) of 4-12% depending on the year of transfer. This amount must be paid through cash.
This is why most people don't opt for splits like 50-50, as it would incur a much higher Buyer Stamp Duty/Seller Stamp Duty when they make the transfer.
Other fees that are usually incurred in the decoupling process include, conveyancing fees for the appointment of 2 lawyers representing each party (Yes, the law requires that one act for the seller and another act for the buyer) and possibly mortgage loan restructuring fees and penalties.
After the exercise of the sale, the exiting party can then move on to buy another private property as a first-time home buyer without incurring ABSD.
There is no need to wait for the completion of the decoupling process before buying into the new property.
The considerations for this method are:
- You must have sufficient cash/CPF to return the exiting party's CPF used plus accrued interest (Unless you have obtained a written reply by CPF that allows a waiver of this refund.)
- You must also have sufficient income to take over the full loan single-handedly.
If you have insufficient funds to do so, there are creative financing methods that can help you achieve that such as pledging of assets and some other less orthodox methods, which are frankly, not suitable to be written about lest i get unnecessary heat from the authorities.
I will cover some of the "document-able" methods in a creative financing techniques article separately.
Going back to topic, you would need to accept that a manner of holding such as 99-1 may not reflect the reality of the situation (e.g. you might be paying most of the mortgage even if you’re the 1 per cent holder).
This is usually not a big deal at the point of purchase, but it could be in cases of dispute or divorce.
Two conveyancing law firms would be needed to handle the decoupling; this can take approximately 4-6 weeks, and costs a total of S$5,000-6000/-.
A word of caution: It is important for you to work with experienced and up to date CONVEYANCING LAWYERS.
Not all lawyers specialise in conveyancing, though some claim to do it when they only do a handful of conveyancing deals over the years. If you hire someone with the wrong expertise, it may cost you alot more pain, financially and emotionally, than you can imagine.
3. "Unofficially" buying under a child’s name
In this method, your child (above 21 years old) buys a property under their own name, while you fund the purchase.
As a first-time home buyer, a Singaporean would not have to pay the ABSD.
While this avoids ABSD, this method can result in complications down the road.
The 1st potential blind spot is that your children now count as private property owners. If they were to get married and buy a private property of their own, you’ll have to either dispose of or transfer the property back to you with ABSD payable (or else foot the bill for ABSD on their actual matrimonial home).
If they were to buy a Build To Order (BTO) flat or Executive Condominium , they would have to dispose the private property at least 30 months ahead of their application, so advanced planning is crucial.
As part of the property cooling measures implemented on 30th September 2022, those who dispose of a private property must also wait 15 months before they are eligible to buy a non-subsidized resale flat.
I experienced an interesting case where the son-in-law of a wealthy client became upset when he found out that they couldn't buy a BTO flat due to his wife owning a 1 bedroom apartment given to her by her dad.
The 1 bedroom apartment was too small for them to live in and they could not sell the property yet due to Seller Stamp Duty and a lack of profit; which in turn affected their plans.
The second blind spot is that your children have to qualify for the mortgage loan.
In order to do so, they would have to have sufficient proof of income as their parents' are not the owners and their incomes cannot be included in the loan application.
If they are not working yet, this might not be a feasible solution although there are "un-documentable" workarounds.
The third blind spot is one of trust.
Your children will legally own the property; they can sell it, use it as collateral for a loan, call the shots on who stays in it, etc.
This can result in some ugly family disputes, some of which end up in court.
So, while this may seem like an easy way to save on ABSD, it is important to discuss and anticipate all possible issues that may arise in the future.
I have found through experience that verbalising and documenting potential pitfalls, and walking clients through this discussion always gives them alot more clarity and assurance on their options later on.
4. Buying Under A Property Trust for children below 21 years old
This is a method for the cash rich as it requires sufficient cash to purchase the property without a loan or CPF usage.
With this method, you can set up a property trust for your child below 21 years old, and buy a property under it with you as the Trustee.
Legally speaking, the property you buy in this way is not yours, it belongs to the beneficiary (your child).
Obviously, you are liable to pay for any taxes and expenses on the property.
However, as you are not legally the owner of this property, it does not add to your property count. This means if you were to buy a second home with this method, you wouldn’t be subject to ABSD.
*Update: From 27 April 2023, the ABSD rate for trustees has been increase to 65%. Trust arrangements which comply with the conditions of remission will be able to get a partial or full refund of the 65% paid.
Yes, a buyer must pay 65% ABSD first. Upfront. No other ways. (Ouch!) And apply for a refund within 6 months of exercising the sales & purchase agreement. Hence, it is crucial that your conveyancing lawyer is familiar and proficient with creating 'eligible' trusts that qualify for a full refund. Otherwise, you might lose a significant chunk of money for no good reason.
Back to topic, as an added bonus buying under a trust, debtors cannot seize the property from you if you’re ever, say, declared bankrupt (touch wood).
In the eyes of the law, the property is not yours.
Therefore, note that this means the property – along with any rental income or sales proceeds if sold – belongs to your child and not you. (This can be circumvented with a joint account existing in both your names though.)
In addition, banks do not grant loans for properties under a trust, so be prepared to pay for the full property value in cash plus Buyer Stamp Duties.
For those who think out of the box, you might be thinking, why can't I set up a trust under my above 21 year old child?
Well, conveyancing law firms generally do not take up cases of a property trust set up for a normal child who is past 21 years old, the age of majority, as it implicates them in abetting ABSD avoidance.
5. Buying a property with a dual-key layout
A dual-key layout is a property that is subdivided into two units. There are different versions of this, but the most common layout is a common entrance, that then splits into two partitioned-off units. In essence, it is two self-contained living spaces under one property title.
This makes it possible to live in one of the sub-units while renting out the other. It's also possible for extended families to live with greater privacy, such as if your in-laws live in one sub-unit while you live in the other.
As a dual-key unit counts as a single property, it can spare you from having to purchase a second unit. This enables rental income without purchasing a second property.
However, a dual-key unit could mean losing some living space. This is because the layout needs extra utility rooms, such a second bathroom or a secondary kitchen for the adjacent sub-unit.
A dual-key unit tends to cost slightly more on a price per square foot basis, compared to regular units. However, this varies between projects, and is not universally true.
You may also want to show the floor plan to an Interior Designer (ID) or contractor first, as dual-key units may be less flexible when it comes to renovation options.
6. Buying Under A Trusted Friend or Family Member's Name
This is a common way used by many investors but comes with big risks as legally, you have no ownership rights in the property.
This means if the relationship sours and your friend or family member plays you out, you have no recourse except to pursue a legal action.
Even then, the legal route might not work as the intent in which this arrangement was created will be questioned, and if it is clear and not beyond any reasonable doubt that the intent was to save on stamp duties, then the arrangement in itself is illegal and cannot be enforced in court as illegal contracts are unenforceable in the first place.
At the same time, this may cause significant grief to the 'owner' of the property if they should decide to apply for a BTO flat, purchase an executive condominium or even a private property of their own in the future as they either would be disqualified or financially penalized for it.
Hence, this arrangement carries lots of financial risk and even potential damage to relationships.
Finally, you could consider investing in commercial and industrial real estate, if you’re ready to take the plunge
Commercial and industrial real estate is a whole different ball game from residential properties and requires alot more research and understanding.
Segments such as shophouses, retail fronts, F&B outlets, offices and industrial B1/B2 sites all carry different risks and returns which aren't suitable for everyone.
Commercial and industrial properties are not subject to ABSD, only GST (if applicable).
Rental yields are generally higher in most commercial and industrial properties but capital appreciation potential generally (Aside from selected shophouses) loses out to residential choices.
Which method works best for you?
There is no single best method to avoid ABSD—it depends on your financial profile, family structure, and long-term plans.
However, as they are more complex in nature, they are less suitable to be written for the masses.
If you do need advice on such matters though, feel free to reach out below to schedule a video consultation with Stuart and his team of Property Wealth Planners.
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Stuart Chng, Executive Group District Director at Huttons, is a renowned leader and personality in the real estate industry.
He adores music and can play a few instruments decently without upsetting his neighbours. When not doing so, he enjoys pillow fighting with his son and coming up with silly puns which barely amuses his wife.
Professionally, he is a licensed real estate agent, an avid stocks, options and real estate investor, business owner, team leader, speaker and columnist for several property newsletters and blogs and is often quoted in media interviews on 938FM, Channel 8, PropertyReport, PropertyGuru and other publications.
Throughout his career, he has helped many clients grow their wealth through selecting great property investments and managing their portfolios actively. Read his clients' reviews here.
Stuart has also coached many top million dollar producing agents from different real estate agencies in Singapore. Read his agents' reviews here.
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